5.4 - Differences in economic development between countries
5.4.1 Differences in economic development between countries
Economic development
● Economic development occurs in a country when there is an improvement in
the overall SOL of citizens
Economic GROWTH: % increase in rGDP per capita
Economic DEVELOPMENT: increase in SOL
Countries with high GDP per capita have:
1) High level of ED
2) High SOL
3) High % of workers in tertiary and quaternary sector
4) High productivity
5) High level of investment
Causes of differences in ED between countries
Factor Explanation
Differences ● Higher GDP/capita = more developed
in income ● Even with high GDP/capita, there may be significant
inequality in the distribution of income → SOL
Differences ● Differences in skills result in difference in productivity
in ● Higher levels of productivity → higher wages → better SOL
productivity
Differences ● More densely populated countries or cities face more
in challenges
population ● A larger population → higher tax revenues for govt but at the
growth same time, govt expenditure on services is spread across
more people
5.4.1 Differences in economic development between countries
Economic development
● Economic development occurs in a country when there is an improvement in
the overall SOL of citizens
Economic GROWTH: % increase in rGDP per capita
Economic DEVELOPMENT: increase in SOL
Countries with high GDP per capita have:
1) High level of ED
2) High SOL
3) High % of workers in tertiary and quaternary sector
4) High productivity
5) High level of investment
Causes of differences in ED between countries
Factor Explanation
Differences ● Higher GDP/capita = more developed
in income ● Even with high GDP/capita, there may be significant
inequality in the distribution of income → SOL
Differences ● Differences in skills result in difference in productivity
in ● Higher levels of productivity → higher wages → better SOL
productivity
Differences ● More densely populated countries or cities face more
in challenges
population ● A larger population → higher tax revenues for govt but at the
growth same time, govt expenditure on services is spread across
more people
